Legora is in early-stage discussions with investors over financing at a valuation of at least $10bn, with the talks potentially involving both new money for the Swedish legal AI company and sales of existing shares.
The discussions come four months after Legora achieved a valuation of $5.6bn. The financing remains preliminary and its terms could change, placing the potential transaction alongside a period of substantial revenue, customer and workforce growth at the company.
Founded in 2023, Legora develops artificial intelligence tools for lawyers and in-house legal teams. Its technology is designed to review and draft documents, speed up due diligence and help legal teams keep track of regulations. Its customers include Linklaters, Deloitte and Heineken.
Legora increased annual recurring revenue by 50 per cent to $150mn in the second quarter this year compared with the first. Its customer base also rose by a quarter to 1,500 in three months.
The company is planning to more than double employee numbers from 700 to 1,500 by the end of the year. The planned expansion comes as Legora continues to increase both its recurring revenue and customer numbers.
Chief executive Max Junestrand is attempting to position Legora as a European AI champion in a sector where US artificial intelligence companies remain prominent. Its main rival, US legal AI start-up Harvey, is reportedly in talks to raise funds at a valuation of about $15bn.
Law firms are also taking different approaches to artificial intelligence. Kirkland & Ellis said in May that it would build its own AI platform rather than rely on tools available to competitors. The US law firm has partnered with technology groups including Palantir.
Junestrand has argued against treating the issue as simply a choice between buying or building technology, instead favouring the use of the best available tools. That position places Legora alongside law firms developing their own systems as competition over AI in professional services develops.
Sweden has meanwhile become one of Europe’s AI hotspots. Lovable, a Swedish “vibe-coding” start-up, raised $400mn this week at a valuation of $13.3bn.
Legora counts Benchmark, Accel, Bessemer, Iconiq and General Catalyst among its investors. Elsewhere in Sweden’s AI sector, Workday bought enterprise AI company Sana for $1.1bn last year.
Sweden’s broader business community, led by the Wallenberg family, also signed a deal with Nvidia last year to build new AI infrastructure including a supercomputer and technology centre.
For Legora, the immediate development remains the financing discussions and the terms that may ultimately emerge. If they result in a transaction, the structure could combine new capital for the company with sales of existing shares while Legora pursues its plan to increase employee numbers from 700 to 1,500 by the end of the year.